Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 815 and ask for its immediate consideration. Mr. Speaker, for the purpose of debate only, I yield the customary 30…
Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 815 and ask for its immediate consideration.
Mr. Speaker, for the purpose of debate only, I yield the customary 30 minutes to the gentleman
from Massachusetts (Mr. McGovern), pending which I yield myself such time as I may consume. During consideration of this resolution, all time yielded is for the purpose of debate only.
(Mr. PUTNAM asked and was given permission to revise and extend his remarks.)
Mr. Speaker, House Resolution 815 is a same-day rule that waives clause 6(a) of rule XIII, which requires a two-thirds vote to consider a rule on the same day it is reported from the Rules Committee against certain resolutions reported from the Rules Committee. It applies the waiver to any resolution reported on the legislative day of May 17, 2006, providing for consideration of the concurrent resolution, H. Con. Res. 376, establishing the congressional budget for the United States Government for fiscal year 2007 and setting forth appropriate budgetary levels for fiscal years 2008 through 2011.
Mr. Speaker, it is imperative that we pass this same-day rule. This resolution will prepare the ground so that the House may complete its business and pass a budget resolution. We are working to moving this process along toward the goal of setting the spending priorities for the next fiscal year.
The House is prepared to begin consideration of several appropriations measures to fund our government's activities, but we must pass this budget first. We must set the priorities in funding levels before we proceed with the appropriations process. The budget is our congressional spending blueprint. We must complete its consideration to move on with the business of the House.
The Committee on Rules will meet later today to provide a rule for the consideration of H. Con. Res. 376, the budget for fiscal year 2007, and I am pleased that this same-day rule facilitates the timely deliberation of this important legislation.
I urge my colleagues to support the same-day rule so that we can move forward to a serious discussion about the budget legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
I agree with my friend from Massachusetts about the magnitude of this budget process and its importance and how we establish priorities in this government, how we lay out a spending blueprint.
My friend from Massachusetts has referred to this as the greatest deliberative body in the world on a couple of occasions, and I would just offer a slight correction that perhaps the Senate is the greatest deliberative body in the world, and we are the greatest legislative body in the world. They talk about it, and we act. We move forward on the agendas that are important to Americans, and we do it in a bold and decisive way, while perhaps the more deliberative body talks things to death and produces nothing.
The budget of the Federal Government works a bit differently than it does for those Members who came from a State legislative background or from local government background. It is a two-step process. The budget lays down the markers, the fence lines, if you will, around the big numbers: X amount for Defense, X amount for Transportation, X amount for Health and Human Services. And the second step of the process then is the appropriations process, which consists of 11 separate bills moving to fill in the blanks: How many tanks and jeeps and bullets and bombs do you buy within the budget framework for defense? How many post offices do you construct or repair within the Postal Subcommittee? How many bridges and roads do you get within the Transportation? They put the meat on the bones.
The skeletal framework is this budget, this blueprint, this spending priority for the Federal Government. And the rule that we are here to debate, and I suspect that this will become a proxy debate on the budget itself, which is not what we are considering before the Speaker today; what we are considering is the procedure that allows us to move forward with the budget that is a hugely important blueprint for this Nation. It is important that we get going on it. We have now been considering it for several weeks. The committee mark has been available for over a month. The substitute amendments that undoubtedly will be presented to the Rules Committee as alternatives have been available for weeks.
So there is no mystery here. There is no secret. We are attempting to facilitate the work of the House.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I thank my friend from Vermont for raising the points that he did. They are very timely in that almost as we speak, the White House signing ceremony will be occurring, where the President, along with the congressional leadership, will be celebrating the fact that we have prevented taxes from automatically increasing, something that the other side would have advocated by virtue of opposing the tax plan.
Now, let's talk a little bit about this tax issue.
I gladly yield to the gentleman from Vermont.
Mr. Speaker, reclaiming my time to answer the gentleman's question, I would answer the question with a question, which is how does the gentleman feel about the fact that 40 percent of American taxpayers end up with no tax liability, and the fact that the top half of all taxpayers in this country contribute almost 97 percent of all income tax revenues to the government? So you have to have a situation where the people who pay taxes are getting tax relief, because we have created such an upside down system where 40 percent of Americans have no tax liability. How is that sharing in the burdens of democracy? How is that contributing to the needs of the Federal Government?
Let me go into this a bit. Up to 40 percent of Federal tax filers cannot receive further tax relief because they have no tax liability. Millions of families in the bottom 20 percent have either zero tax liability or get money back from the government after April 15 through the Earned Income Tax Credit or the child tax credit. In 2003, as I said, the top half of taxpayers, the top 50 percent of taxpayers, contributed 96.5 percent of all Federal individual income taxes, while the bottom 50 percent, the bottom half, contributed less than 3.5 percent. This reflects the early effects of the Republican tax reforms under the Economic Growth and Tax Reconciliation Act and the Jobs and Growth Tax Reconciliation Act.
The top 1 percent, the top 1 percent of tax filers paid 34 percent of all Federal personal income taxes in 2003, while the top 10 percent accounted for 66 percent of those taxes.
So this is not just about going after athletes and rock stars and Hall of Fame pitchers. It is small businesses who pay at the individual rate that are receiving the benefits of these tax reforms. It is married couples who have benefited from seeing the marriage tax penalty eliminated. It is families with children. It is an extension of the 10 percent bracket. It is the increase in the AMT, the alternative minimum tax, the Rostenkowski tax that was put in place under the Democratic leadership of the Congress, that now, like the insidious effects of the Federal Government, has found its way into the pockets of millions of middle-class Americans.
The tax bill the President is signing today prevents those taxes from going up on middle-class Americans, it prevents the AMT from taking effect on millions of people who don't know what AMT even stands for but are going to get stuck with a tax bill for it and it encourages investment in this strong economy.
Frankly, the results have been staggering, where revenues to the government have gone up 14 percent because of the fact that we have had in place capital gains rates, dividend tax rates, AMT relief, sales tax deductions, that allow people to continue to invest and
take on new employees and take risks, which is the heart of a free enterprise economy.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I appreciate the gentleman from South Carolina's diligent efforts on the Budget Committee as the ranking member. He, along with our chairman, have forged a very strong working relationship. I respect his efforts on these issues, and he has certainly been working on them for years.
Let me take a moment, though, to scrutinize the Democratic substitute, where, if our budget is the Land of Oz, theirs is worthy of a good Sherlock Holmes novel, a who-done-it and where-did-they-put-it, because they seem to rely on revenues that just do not exist.
For example, the key component of their revenue in the Democratic substitute is over $700 billion in what the IRS calls the tax gap. In other words, it is the difference between what people owe the IRS in taxes and the collections that actually come in.
They assume, my friends on the other side of the aisle, in their budget projections that all $727 billion of that so-called tax gap shows up. Now, if they know where it is now to project it in their budget, please share it with us so that we may meet these needs, these unmet needs that have been described with great elaboration.
You seem to know where it is, because you know for a fact such that you budget for it, that it will appear, poof, that it will show up in time to make your budget balance.
They allow the important tax reforms that we have worked so hard to implement over the past several years to expire. They allow taxes to go back up. Their budget, their budget, provides for only $150 billion in tax relief, which I am glad to see that they are coming around to the concept that tax relief can be an important economic stimulant, as we were just hearing the opposite view in congratulating the President for signing $70 billion in tax relief, and yet they account for $150 billion, but say that our $70 billion was reckless and irresponsible. They would allow the child tax credit to expire, or the 10 percent bracket to expire, or the death tax to expire, or the marriage penalty to expire to make their numbers work.
And so when we get tied up in all of the rhetoric about this issue, it is important to remember that the budget debate that we will be moving forward with today is about choices. It is about a different set of priorities as represented by the two political parties for the future of this country. Our budget deals with both sides of the ledger. Our budget recognizes that over half of the Federal spending today is on the mandatory side of the ledger. It is on automatic pilot.
That is unsustainable. Both parties know that Social Security needs help. Both parties know that Medicare needs help. Both parties know that Medicaid needs help or it will sink the entire Federal budget. It makes up 55 percent of spending today. Within the decade it will make up two-thirds of Federal spending. Their budget does not address 55 percent of the Federal budget, a $2.17 trillion budget; just ignores it. That is not responsible. That is not dealing with the problems that we know exist and will only grow in magnitude and scale as time moves on.
These are the challenges that our budget attempts to deal with and deal with in a very responsible and balanced way.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield 4 minutes to the chairman of the Joint Economic Committee, the gentlemen from New Jersey (Mr. Saxton).
Mr. Speaker, will the gentleman yield?
Well, I thank the gentleman for his generosity.
Mr. Speaker, I would ask the gentleman, in his use of the term martial law, the fact that we are here in a democratic process arguing about it for an hour and then going to have a vote on it, under which chapter and verse of Webster's is that martial law where there is debate, discussion, transparency, and a vote?
Mr. Speaker, I am pleased to yield 5 minutes to my friend and colleague from Georgia (Mr. Kingston).
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I thank my friend from Massachusetts. He does have a way with words and continues to refer to a process whereby, in order to waive the rules of the House, you must come to the floor, introduce a resolution, it must be given an hour of debate, which we have been engaged in very vigorously, and be voted on. I mean, Pinochet and Castro would laugh at the notion that that has anything to do with martial law. This is a process under our rules that requires a vote. It requires debate. It requires transparency.
The simple fact of the matter is we have to move a budget. This Nation needs the spending blueprint, it needs the discipline, it needs the restraint
that a budget provides. Then the appropriators, as my friend from Georgia has discussed, the appropriators take over. And they can pass within that box that we have put Federal spending in, in the Federal budget, 11 different bills that deal with each component of government: defense, veterans, transportation, energy and the environment, military quality of life, the whole range of issues that then are debated again in committee, in subcommittee, on this floor, in the conference with the Senate.
This is a transparent process, a patently transparent process where people are free to watch their Members actively, aggressively, work to take language out of bills, to put language in the bills, to shift formulas around to benefit high-growth States or to protect low-growth States from having those monies shifted around; to put more money into veterans and less for the arts, or more into the arts and less for the Corps of Engineers, or more for the Corps of Engineers because of Katrina; to set aside emergency funds because we know that every year there will be a drought or a wildfire or a hurricane or an earthquake. All of those huge issues that are embodied in over $2 trillion in Federal spending are here today in the form of the Federal budget.
This bill, this resolution, allows us to move forward with that process that began months ago, that began on a bipartisan basis in the Budget Committee, that was debated extensively in the Budget Committee, that was marked up in the Budget Committee, and will end up on the floor of this House today.
This is an open process, it is a transparent process. Anyone who has observed this debate can see that it involves a great deal of viewpoints about a great deal of very important issues. And that is the position we find ourselves in here today. It is a healthy process because it is a fundamental decision about the direction that Americans' hard-earned tax dollars will be taken.
Will those tax dollars find their way into bloated bureaucratic programs? Will they find their way into duplicative programs? Will they find their way back into a surging economy? Will they find their way into investments in the cure for cancer and Lou Gehrig's disease and a whole host of other ailments? Will they fund our troops in the theater of war?
That is the decision we are positioned to move forward on here today.
Mr. Speaker, I yield back the balance of my time, and I move the previous question on the resolution.
The previous question was ordered.